10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
China brewers eye Hong Kong Kingway’s beer assets – source
* Kingway shares up 3.2 pct at three-week high
Chinese brewers including China Resources Enterprise Ltd and Tsingtao Brewery Co Ltd are among potential suitors eyeing bids for the brewery operations of Hong Kong-listed Kingway Brewery Holdings Ltd, a source familiar with the matter told Reuters on Monday.
"Many mainland brewers are interested in the assets including CR Snow, Tsingtao, Beijing Yanjing Brewery Co Ltd and Guangzhou Zhujiang Brewery Co Ltd," said a source close to the company, declining to be identified because of the sensitive nature of the matter. "Many of them have asked for supplementary information. Nothing has been finalised yet."
Kingway, a smaller rival of CR Snow, said in January that it planned to invite beer producers to submit proposals and indicative offers for the possible acquisition of some of its brewery business and assets, as the company reviewed its strategy in uncertain economic conditions.
China's largest brewer CR Snow is a joint venture between China Resources and SABMiller Plc.
In April last year, Kingway Brewery said GDH Ltd, a unit of state-backed Guangdong Holdings Ltd, had exercised the right to buy the 21.37 percent stake held by a Heineken NV joint venture in China, blocking a bid from China Resources. GDH would buy the stake for 1.08 billion yuan ($164.94 million), increasing its holding to 73.82 percent.
Kingway was previously jointly controlled by Asia Pacific Breweries Ltd (APB), a unit of Singapore food and property conglomerate Fraser and Neave Ltd, and the world's third-largest brewer Heineken.
Shares of Kingway, which has a market capitalisation of about $570 million, rose 3.2 percent on Monday afternoon, the highest in three weeks.
The world's largest brewer Anheuser-Busch InBev SA had also expressed interest in buying the assets, Dow Jones reported, citing people familiar with the situation. The report added that bids were due by the third week of February and several parties had expressed interest in buying the assets.
China Resources, whose beer brands include Snow, and Kingway declined comment. Anheuser-Busch InBev and Tsingtao were not immediately available for comment.
China's beer consumption hit 450 million hectolitres in 2010. It is expected to grow 5 percent per year in coming years, double the 2.5 percent growth forecast for the global market this year.
Chinese brewers are making an aggressive push into premium brands, lured by high margins and huge growth potential and posing a tough challenge to the foreign companies that dominate the category in the world's largest beer market.
14 Feb. 2012